The Doer government’s 2009 budget contained some good news, some bad and plenty of room to incorporate a New Brunswick style plan.

Due to the current economic conditions, most Manitobans weren’t likely expecting massive tax relief in the Doer government’s budget.  That being said, for deciding to stand by previously announced tax cuts, the Doer government deserves credit.

The government will reduce the business tax rate from 13% to 12% on July 1 and reaffirmed its commitment to eliminating the small business tax rate and the business capital tax over the next couple years.  Again, kudos to the government, all three of those measures will help improve Manitoba’s competitiveness. 

Unfortunately, when it comes to personal income taxes, the government does not have a plan to make our tax rates competitive in the future.  That is a fact not an opinion.

On page “C4” of the government’s 2007 budget, a five-year plan to provide modest income tax relief was clearly noted.  That same table appeared on page “C2” of last year’s budget.  Fast forward to this year and you’ll notice the plan is missing from budget documents and was cancelled without so much as a mention in any of the government’s six news releases on budget day.  It was a very modest tax relief plan that didn’t address our large tax gap with other provinces, but at least it was a plan.

On the bright side, at least now the government can start from scratch and develop a bold plan that actually addresses the matter.

For leadership in developing such a plan, one should look to New Brunswick.  Just like Manitoba, New Brunswick is considered a “have not” province.  They too bear the shame of being propped up by handouts from other provinces (a government on social assistance if you will).

When the New Brunswick government recently announced its annual budget, it also released a document titled: “The Plan for Lower Taxes in New Brunswick 2009-2012.”  It’s a bold plan that reduces their four-rate personal income tax system (10.12%, 15.48%, 16.8% & 17.95%) down to two – 9% and 12% by 2012. 

If you compare those rates with Manitoba’s (10.8%, 12.75% and 17.4%), you’ll see yet another province is poised to pass us by.

The New Brunswick plan also calls for reducing business taxes from 13% down to 8%.  Throw in the fact that New Brunswickers don’t pay school taxes and you can see why the province is garnering attention.

On the expenditure side of the ledger, spending will be curbed at 2% annually over the next four years.  The plan includes a salary and wage review of government employees to make sure their salaries aren’t way above those in the private sector who pay their salaries. 

Just when you thought New Brunswick’s plan couldn`t get any better, Premier Shawn Graham has set a goal of making New Brunswick self-sufficient (a “have” province) by 2026.

Talk about vision.

Why doesn’t Manitoba have a similar plan? 

Who knows, but let’s not get caught up with finger pointing.  Let’s do what New Brunswick did and develop our own plan.

Just like News Brunswick, Manitoba should set a goal of standing up on its own two feet by 2026 or even sooner.  Just like New Brunswick, Manitoba should set out a bold plan to control spending and provide tax relief to citizens and businesses.  Most importantly, just like New Brunswick, Manitoba needs a plan.